Tokenized gold is gaining significant ground in digital asset markets as investors seek safety from escalating global trade tensions.
The market capitalization of gold-backed crypto tokens climbed to just under $2 billion on Wednesday, rising 5.7% in 24 hours, per CoinGecko data. The surge came as spot gold prices briefly hit a record $3,170 per ounce amid macroeconomic uncertainty.
Recent data from CEX.IO shows tokenized gold has outpaced other crypto sectors in growth since President Trump’s January 20 inauguration. The sector’s market cap is up 21% over that period, compared to an 8% gain for stablecoins and a 19% decline for bitcoin. The broader crypto market has shed 26%.
Top-performing tokens Paxos Gold (PAXG) and Tether Gold (XAUT) have seen trading volumes soar. CEX.IO reports that weekly volumes have increased by 900% and 300%, respectively, since late January. PAXG alone attracted over $63 million in inflows, according to DeFiLlama.
Despite broader market volatility, demand for gold-linked crypto products has remained strong. Weekly tokenized gold volume surpassed $1 billion, reaching levels last seen during the 2023 banking sector stress.
“Investors are turning to tokenized gold as a strategic hedge,” said Alexandr Kerya, VP of Product Management at CEX.IO. “It offers exposure to the stability of physical gold while staying within the crypto infrastructure.”
The rising interest is also buoyed by the broader real-world asset (RWA) tokenization trend, which is making gold more accessible to digital-native investors.
Gold-backed tokens may continue to attract capital if macroeconomic and geopolitical conditions remain volatile.
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